Home / Analysis / Crypto / Technical Analysis / Chainlink’s Upward Movement Continues: Is LINK Eyeing $8?

Chainlink’s Upward Movement Continues: Is LINK Eyeing $8?

Published September 28, 2023 2:06 PM
Nikola Lazic
Published September 28, 2023 2:06 PM

Key Takeaways

  • LINK rose by around 40% since September 11 low.
  • Significant resistance zone is very close.
  • More upside may occur but today’s high is still lower than July 20 one.

LINK’s price has been on an upward trajectory since September 11, following a period of sideways movement starting from August 17 when it hit a low of approximately $5.70. Since then, it has surged by over 37% and currently stands at $7.776.

It’s now nearing its previous high from July 21, with just a 7% gap to fill. The question is whether it will continue its ascent, establishing a new higher high and signaling the start of a bullish cycle, or if resistance at these levels will trigger a price reversal.

LINK Price Analysis

After reaching its all-time high of $52.8 on May 10, 2021, LINK entered a bear market, plummeting by a substantial 75% to $13.4 by July 21. However, it mounted a notable recovery, regaining ground and climbing to $38 by November 11 of the same year.

Still in a horizontal range
Still in a horizontal range

Following this, the price once again took a downward trajectory, stabilizing around $5.30 throughout May and June 2022. This marked the lowest point in its bearish phase, reflecting a staggering 90% drop from its all-time high.

After this dip, LINK’s price entered a sideways movement pattern, with a floor at $5.30 and a ceiling at $9.20. This consistent fluctuation persisted for 504 days, commencing with the decline to $5.30 on May 12, 2022, and continuing to this day.

This price behavior can be interpreted as a consolidation phase, showing a higher level when compared to the period from June 28, 2019, to July 4, 2020.

In the current year, on July 14, LINK experienced an upward shift, breaking free from a declining trend that had originated from its peak in August of the previous year. While it saw a minor dip in August, the token has since maintained its improved position.

Noteworthy is the end of August this year when LINK established a higher low at $5.80, in contrast to an earlier low at $5 on June 10. Could this subtle shift signify the beginning of a bullish phase?”

LINK Price Prediction 

Following LINK’s price shift on June 10, when it broke free from the declining trendline, it potentially marked the initiation of the first five-wave impulse within a broader uptrend. Starting from July 20, the price reached $8.3 and subsequently retraced, forming a three-wave pattern within the downward structure.

Starting impulse?
Starting impulse?

This sequence may indicate an ABC corrective phase followed by the next wave within a broader five-wave upward impulse.

In this scenario, the recent surge observed since the end of August could potentially signify the third wave of this upward trajectory, with the target set to surpass the $9.20 resistance level.

If this is achieved, the next target price would be approximately $13.8, aligning with the 1.618 Fibonacci extension point. This would constitute wave 3, and if the price movement aligns with our projection, a subsequent correction might follow to retest the previously broken resistance, now acting as support around $10.

Conversely, a dip below the current level and a drop beneath $5.80 would invalidate this bullish hypothesis. In such a case, we would need to consider the possibility of a decline below $5.

Currently, the price remains below its previous high on July 20, which stood at $8.40. Achieving a breakthrough above this level represents a critical milestone in determining the likely future trajectory. A move beyond $8.40 would strongly suggest a continuation past the $9.20 resistance point.

Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

 

Was this Article helpful? Yes No